New York State’s Energy Efficiency Portfolio Standard Bill Saxonis Office of Energy Efficiency & Environment New York State Department of Public Service.

New York State’sNew York State’sEnergy Efficiency Energy Efficiency Portfolio StandardPortfolio Standard

Bill SaxonisBill SaxonisOffice of Energy Efficiency & EnvironmentOffice of Energy Efficiency & EnvironmentNew York State Department of Public Service New York State Department of Public Service

Encore? Energy Efficiency Program PerformanceNARUC Workshop – Washington DC

February 16, 2008

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The Energy Efficiency Portfolio Standard The Energy Efficiency Portfolio Standard (EEPS) Proceeding(EEPS) Proceeding

The Proceeding was born on May 16, 2007 by Commission Order The Proceeding was born on May 16, 2007 by Commission Order (Case 07-M-0548).(Case 07-M-0548).

Reduce electricity usage by 15% from the levels forecasted for 2015 Reduce electricity usage by 15% from the levels forecasted for 2015 (15 X15 goal).(15 X15 goal).

Comparable reduction goal for natural gas usage.Comparable reduction goal for natural gas usage.

Achieving the 15X15 goal will bring electricity usage in Achieving the 15X15 goal will bring electricity usage in 2015 to below the 2006 level.2015 to below the 2006 level.

About 25,000 GWh of sales reduction will be needed to meet the 15 X About 25,000 GWh of sales reduction will be needed to meet the 15 X 15 goal.15 goal.

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What did the Commission say about What did the Commission say about evaluation?evaluation?

““Ensure transparent and technically sound Ensure transparent and technically sound methods for measurement and verification of net methods for measurement and verification of net energy savings, benefits and costs, as well as energy savings, benefits and costs, as well as assessment of customer satisfaction and assessment of customer satisfaction and program efficacy.”program efficacy.”

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EEPS – A Transparent ProcessEEPS – A Transparent Process

Plenary collaborative meetings, technical conference, Plenary collaborative meetings, technical conference, list-serve/web page…list-serve/web page…

Roundtable sessions for the general public.Roundtable sessions for the general public. Staff “straw proposal” to encourage feedback.Staff “straw proposal” to encourage feedback.

4 working groups made up of key parties.4 working groups made up of key parties.

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The Four Working The Four Working GroupsGroups

WGI - Administration (who does what?)WGI - Administration (who does what?)

WGII - Program designWGII - Program design

WGIII - Evaluation/EEPS targetsWGIII - Evaluation/EEPS targets

WGIV - Emerging technologies/demand WGIV - Emerging technologies/demand response/peak loadresponse/peak load

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Issues for WG IIIIssues for WG III

Comprehensive evaluation (impact and process Comprehensive evaluation (impact and process evaluation).evaluation).

Long and short term evaluation. Important to have Long and short term evaluation. Important to have

an “early warning system” to identify program an “early warning system” to identify program deficiencies.deficiencies.

Consistent evaluation terms and measurement Consistent evaluation terms and measurement techniques to accurately track statewide progress.techniques to accurately track statewide progress.

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Issues for WG IIIIssues for WG III

Reliable cost effectiveness test.Reliable cost effectiveness test.

Credible, timely and accurate results for Credible, timely and accurate results for ratepayers, regulators, and Independent system ratepayers, regulators, and Independent system operator.operator.

Transparency in reporting from routine program Transparency in reporting from routine program data to detailed evaluation results.data to detailed evaluation results.

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Some Key WG III QuestionsSome Key WG III Questions

How do we deal with How do we deal with diversediverse evaluation issues, evaluation issues, for for diversediverse programs, implemented in a programs, implemented in a diversediverse state?state?

Should we establish statewide evaluation Should we establish statewide evaluation protocols ? Will everyone comply?protocols ? Will everyone comply?

How do we assess impacts of Codes and How do we assess impacts of Codes and Standards? R&D?Standards? R&D?

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Some Key WG III QuestionsSome Key WG III Questions

How do we effectively quantify the impacts How do we effectively quantify the impacts attributableattributable to the programs?to the programs?

Do we need a statewide evaluation group to help guide Do we need a statewide evaluation group to help guide the process over the short and long term and the process over the short and long term and coordinate statewide studies?coordinate statewide studies?

How do we balance evaluation costs and data How do we balance evaluation costs and data reliability?reliability?

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Sage AdviceSage Advice

““A problem is a chance for you to do A problem is a chance for you to do your best.” -- Duke Ellington,your best.” -- Duke Ellington, Musician, Musician, American GeniusAmerican Genius

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WG III ResultsWG III Results

Strong support for rigorous evaluation. Strong support for rigorous evaluation.

Detailed evaluation plan for Detailed evaluation plan for everyevery EEPS EEPS program.program.

Sufficient evaluation funding to get the job Sufficient evaluation funding to get the job

done….up to five percent of overall program done….up to five percent of overall program budget.budget.

Transparent and regular reporting.Transparent and regular reporting.

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Support for statewide Evaluation Task Force Support for statewide Evaluation Task Force (ETF).(ETF).

General agreement that the ETF could play a General agreement that the ETF could play a key role in establishing evaluation protocols key role in establishing evaluation protocols and, in some cases, coordinate research of and, in some cases, coordinate research of statewide interest.statewide interest.

Lack of consensus over key details such as Lack of consensus over key details such as exact role, authority, membership and funding.exact role, authority, membership and funding.

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Support for Total Resource Cost (TRC) Support for Total Resource Cost (TRC) Test.Test.

Consider modifying TRC to include Consider modifying TRC to include benefits beyond avoided energy resources benefits beyond avoided energy resources savings for worthwhile programs that do savings for worthwhile programs that do not pass the test.not pass the test.

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What did the ALJs say?What did the ALJs say?

Rigorous evaluation “is critical to the success of the Rigorous evaluation “is critical to the success of the EEPS as a whole.” EEPS as a whole.”

Endorsed concept of a statewide Evaluation Task Endorsed concept of a statewide Evaluation Task Force (ETF).Force (ETF).

ETF needed “to ensure that all program administrators ETF needed “to ensure that all program administrators are evaluating programs and reporting results are evaluating programs and reporting results consistently, reliably and regularly.”consistently, reliably and regularly.”

Support for TRC test as a screening tool.Support for TRC test as a screening tool.

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One More Thing…One More Thing…

““Ever onward and upward to the end Ever onward and upward to the end where all ends end– just before the where all ends end– just before the beginning.”beginning.”

Duke Ellington, Musician, American GeniusDuke Ellington, Musician, American Genius

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To Contact Us About the EPS ProceedingTo Contact Us About the EPS Proceeding

Visit our Web site: Visit our Web site:

http://www.dps.state.ny.us/Case_07-M-0548.htmhttp://www.dps.state.ny.us/Case_07-M-0548.htm

E-Mail: [email protected]: [email protected]

Call: (518) 486-1610Call: (518) 486-1610

Write to us:Write to us:

NYS Department of Public ServiceNYS Department of Public ServiceOffice of Energy Efficiency & Environment Office of Energy Efficiency & Environment Three Empire State PlazaThree Empire State PlazaAlbany, NY 12223-1350Albany, NY 12223-1350